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Publishers often offer different versions of a book at different prices. Hardback versions are the most expensive followed by e-books, and then paperback copies. Some retailers are going one step further and are selling even cheaper, bare-boned paperback versions (e.g., generic covers).
Seven Versioning Pricing Tactics.
A La Carte: Can you offer customers a menu of options for them to version your product? For example, in addition to selling a basic wash, car washes offer a variety of a la carte options including: different waxes, undercarriage wash, wheel cleaning, and rust inhibitor.
More is Better: Can you offer products with “more” (e.g., higher quality, support, or experience)? For example, international airlines offer first, business, and coach class seating.
Less Can be Profitable: Can you offer “less” (e.g., lower quality, brand, service, or experience) to attract new (usually value-conscious) customers. For example, major grocery chains sell discount private label products.
Add or Subtract Features: Can you change your product’s attributes in a manner that will attract new customers? For example, Williams- Sonoma often asks product manufacturers to create color options that are exclusively sold at Williams-Sonoma like Sonoma Green or Cobalt Blue.
Expedited Service: Can you provide faster service to your customers? For example, Federal Express offers 8:30 AM, 10:30 AM, and 3:30 PM same day delivery.
Avoid the Wait: Can you offer options that allow customers to go to the head of the line? For example, Universal Studios Hollywood theme park offers $59 regular admission tickets as well as a $89.95 ticket version that allows purchasers to go to the head of the line at any theme park attraction.
Uncertainty: Can different levels of uncertainty (i.e., reducing consumer or your risk) be used to version your product? For example, to mitigate all of the uncertainty of oil costs, many home heating oil companies are offering their customers the option to lock in their prices for the winter season.
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